Palm oil freight rates not impacted by military attacks in Sabah

06 March 2013 04:34  [Source: ICIS news]

SINGAPORE (ICIS)--Palm oil freight rates from southeast Asia to India and China are not being impacted by military attacks in Malaysia’s Sabah state, according to two southeast Asian shipping sources.

“We see prices so far are rather stable. No significant impact,” said a Singapore-based shipowner.

Malaysian military forces are currently mounting an attack on an armed Filipino group in Sabah. 

“Lahad Datu [in Sabah] is one of the many loading areas in Malaysia. So, these attacks so far are not affecting sentiment in any big way,” said another southeast Asian charterer.

However, the charterer did not rule out a palm oil freight increase in the coming weeks, if the attacks are prolonged.

“Things are still happening quite fast. Anything could change if the attacks are prolonged. Let’s wait and see,” the charterer said.

According to Bernama news agency, Sabah accounted for a quarter of Malaysia's 18.8m tonnes of crude palm oil production last year.

By: Muhamad Fadhil
+65 6780 4356

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index